Babcock: FTSE 100 shares double in value to ten-year high
Shares in Babcock, the FTSE 100 aerospace, defence and nuclear engineering services giant, have rocketed to their highest value since 2015 after doubling in price.
The London-listed group has enjoyed a bumper 2025 so far, with its share price rising from just over 500p at the start of January to now be priced at more than 1,066p.
Babcock’s shares have been boosted further in recent days following the government unveiling its strategic defence review.
Fellow FTSE 100 giants BAE Systems and Rolls-Royce have also enjoyed rising share prices off the back of the review.
Plans to build up to 12 new nuclear-powered attack submarines have been included in the 130-page document, which concludes UK must prepare for conflict in Europe or the Atlantic and move to “war-fighting readiness” as a countermeasure to Russian aggression.
On Monday, shares in Babcock jumped by more than seven per cent to pass the 1,000p mark for the first time since the end of September 2016.
Its current share price is the highest it has been since November 2015.
Strategic review boosts Babcock
On Monday, the government pledged to spend £15bn upgrading the UK’s armed forces.
Other announcements included building up to 7,000 long-range weapons including missiles or drones and a £1.5bn commitment to build six new factories.
The Ministry of Defence (MoD) expects construction of the new submarines to support 30,000 jobs into the 2030s as well as 30,000 apprenticeships and 14,000 graduate roles over the next 10 years.
The review was led by the former Labour defence secretary Lord Robertson, and made 62 recommendations in total.
In April, Babcock reported a significant jump in full-year profit and revenue as heightened military tensions continue to prop up European defence contractors.
Operating profit increased 17 per cent to £363m on an underlying basis, while revenue grew 11 per cent to £4.8bn.
Net debts fell to £373m including leases, down from £435m the year before.